After a rollercoaster ride on Tuesday, Capitec seem to have survived the first wave of the storm created by Viceroy Research. However, according to Fin24, the PSG Group believe that the worst is already over for the bank.

The research team blasted Capitec for acting like ‘predatory loan sharks‘, and questioned how they were able to become one of South Africa’s leading lenders despite mainly appealing to a low-income market.

What have Capitec been accused of?

They suggested that the bank should write-off R11 billion, in order to paint a fairer picture of their real finances. Yesterday, it seemed like the financial institution were in a bit of a ‘Vice’. But the support they’ve received is telling.

SA Reserve Bank were the first to jump to Capitec’s defence, by assuring clients that their money is safe with them. Now, the PSG Group have taken aim at Viceroy Research, and discredited their take-down of the bank

Who are PSG Group?

PSG are an independent financial services group based in Namibia and Mauritius. They are heavily involved in asset management and fiscal insurance. As reported by Fin24, they are Capitec’s largest shareholder with 30%, and they’re standing by their client:

“Capitec’s corporate governance is undoubtedly world class. Its continued transparency and ability to release its audited year-end financial results within a month after the reporting date, bear testimony thereto.”

The PSG Group are also highly concerned with how the findings were published without consulting Capitec’s management, diluting their understand of it the bank operates. They now want to launch an investigation into the conduct of Viceroy.

Capitec share price for Wednesday 31 January

The bank will open on R904.99 today, rallying back from R705.00 at midday on Tuesday. The whole turmoil saw them lose 4% of their market value. However, SARB’s backing helped fuel the fightback.

With PSG’s continued support, Capitec can hope to make up some serious ground. But expectation is a step too far in this volatile market.